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Raiffeisen Bank Faces Huge Financial Blow After Russian Court’s €2 Billion Ruling

Raiffeisen Bank International AG is preparing for a significant financial setback after a Russian court ruled that its Russian subsidiary could be liable for more than €2 billion in damages. The case is linked to a legal dispute between Rasperia Trading, a company previously controlled by sanctioned Russian oligarch Oleg Deripaska, and the Austrian construction firm Strabag SE. Raiffeisen’s involvement stems from its position as the largest shareholder in Strabag, but its Russian unit has become the primary target for damages due to the lack of other available assets within Russia.


Key Financial Figures Amount (€ Billion)
Estimated lawsuit liability 2.0+
Excess capital in Russia 4.45
Expected provision 0.4+

A Russian court has ordered Austria’s Raiffeisen Bank International, the largest Western bank operating in Russia, to pay over €2 billion ($2.1 billion) in compensation. The ruling marks one of the most significant legal actions against a Western institution still engaged in Russia and underscores the mounting risks associated with business operations in the country.

Raiffeisen has announced plans to appeal the decision and is seeking to recover part of the seized funds through legal proceedings. The bank will also allocate a financial reserve in its reports to absorb the €2 billion loss.

Despite nearly three years having passed since Russia’s full-scale invasion of Ukraine, Raiffeisen Bank International’s continued presence in Russia highlights the enduring financial ties between Moscow and Austria. Vienna remains a key transit hub for funds flowing from Russia, placing both Raiffeisen and Austria at the center of U.S.-led efforts to impose tighter sanctions on Russia’s banking sector.

The ruling further demonstrates Russia’s ability to exert legal pressure on foreign banks. Andrei Timchuk, a partner at Delcredere representing Raiffeisen, condemned the lawsuit as an attempt to force the sale of blocked assets through Russian courts, citing gross violations in the legal process.

The conflict stems from a failed agreement that Raiffeisen had hoped would allow it to access part of its frozen assets in Russia. The case involves a lawsuit by Russian investment firm Rasperia against Austrian construction company Strabag, its shareholders, and Raiffeisen’s Russian unit. Raiffeisen had attempted to acquire a stake in Strabag from Rasperia, a company linked to Russian oligarch Oleg Deripaska, who remains sanctioned by the U.S. government.

According to sources familiar with the situation, Raiffeisen currently holds approximately €6 billion ($6.29 billion) in Russia, consisting of funds from international transactions and Russian deposits. The bank, with 18 million customers and 44,000 employees across Europe, has played a pivotal financial role in Austria and Eastern Europe.

Despite repeated statements about its intention to divest from its Russian business, Raiffeisen has yet to make a decisive exit nearly three years into the war. As many Western nations distance themselves from Russia, certain Austrian political figures remain hesitant to sever ties completely, citing historical reasons, including Russia’s role in Austria’s post-World War II recovery.

Key Financial Figures Amount (€ Billion)
Court-ordered payment 2.0+
Estimated holdings in Russia 6.0+
Bank’s total customer base 18 million

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